Alinta/Alcoa/DUET Consortium - s.87B undertaking

The Consortium (Alinta Limited, Alcoa of Australia Limited and Diversified Utility and Energy Trusts No 1 and No 2) proposed to acquire the Dampier to Bunbury natural gas pipeline (DBNGP). The ACCC expressed concerns at the competitive effects of the proposed acquisition, particularly in electricity generation and gas retailing in Western Australia. The Consortium members and other relevant organisations have offered undertakings which, amongst other things, require:

• settlement of the proceedings before the Gas Review Board within 5 business days of the completion of the acquisition;
• that no person who is a director or secretary or a member of the staff of Alinta or any of its related bodies corporate (other than Alinta Network Services (ANS)) will be involved in commercial negotiations between DBNGP Holdings and other shippers relating to gas transportation on the DBNGP;
• that Alinta ring fence its activities in relation to ANS so that no member of the marketing staff of Alinta has access to ring fenced information;
• that ANS not discriminate between shippers in performing its functions as a service provider to EEWAT;
• that the standard shipper contract includes confidentiality and non-discrimination obligations which are no less favourable to the shipper than those contained in Schedule 1 to the undertaking;
• that EEWAT comply with the ring fencing obligations imposed on it by section 4 of the Gas Access Code as if Alinta and its related bodies corporate (other than ANS) are Associates of EEWAT;
• that ANS comply with the ring fencing obligations in section 4 of the Gas Access Code, other than the obligations in sections 4.1(c), (d) and (e), as if it were a Service Provider and as if Alinta and its other related bodies corporate were Associates;
• that EEWAT offers to all prospective shippers who require a T1 Service, a Standard Shipper Contract that contains capacity expansion rights that are not materially less favourable than the capacity expansion rights contained in any other shipper contract for a T1 Service;
• that capacity on the DBNGP be expanded between the DOMGAS Dampier Plant Inlet Point and CS10 by not less than 100TJ/d within 5 years of completion of the acquisition;
• that $400 million be invested in connection with the above expansion;
• that the shippers are dealt with on a fair and non-discriminatory basis; and
• that independent audits on compliance with the undertaking are completed